San Diego Overconcentration Law Firm

Shepherd Smith Edwards and Kantas San Diego Overconcentration Law Firm Represents Southern California Investors In Recouping Their Portfolio Losses Caused by a Lack of Diversification

For 35 years, our San Diego Overconcentration Law Firm has been representing inexperienced investors, sophisticated investors, accredited investors, wealthy investors, and institutional investors in pursuing losses that occurred because a broker-dealer engaged in excessive concentration in their portfolios.

Throughout Southern California, contact the Shepherd Smith Edwards and Kantas San Diego Overconcentration Law Firm (investorlawyers.com) to explore your legal options and determine whether you have grounds for a claim.

The Risks Of Excessive Concentration To San Diego Investors

Overconcentration is the term given to when an investment portfolio has not been adequately diversified. Instead, too much of the investor’s money is placed in one security, commodity, stock, asset class, or industry. This lack of diversification can place the investor at huge risk of loss and is generally considered a poor practice because it fails to create a balance that can help weather stock crashes, industry crashes, an investment doing badly, and more.

Overconcentration by a broker can occur because the financial advisor was purposely choosing to ignore the need for proper diversification—perhaps a particular alternative investment would earn them higher commissions, hence the decision to invest too much or even all of the customer’s money in that product, even if it was not in their best interests. Excessive concentration may also happen due to a stockbroker’s inexperience, ignorance, or inadequate training.

It is important to note that what constitutes too much concentration in a portfolio is different for each investor depending on their net worth, investing experience, risk tolerance level, financial goals, and more. For some sophisticated San Diego, CA investors, overconcentration is a deliberate investing strategy that they understand and are choosing to utilize. They are aware of the risks and are opting in because of the potential gains.

Our Southern California securities law firm can help you assess whether diversification failure issues by your broker contributed to your investment losses. As a matter of fact, many of our clients that we represent are victims of overconcentration. Even If the broker-dealer was unaware that your portfolio wasn’t being properly diversified by their registered representative, you still may be able to sue them for damages for failing to properly supervise your account.

While in certain investment accounts, identifying whether overconcentration occurred is obvious, sometimes this can be harder to determine. Our team of seasoned securities attorneys, legal assistants, consultants, and others has over a century’s worth of combined experience in securities law and the securities industry. We are well-versed in what excessive concentration looks like and how to maximize an investor’s chances for a full financial recovery from their broker-dealer.

For example, a portfolio with different investments may look like it is properly diversified.  However, if these investments use the same kind of strategy, this can lead to overconcentration. Excessive concentration can also come about because a broker neglected to regularly review a customer’s portfolio, and one of the investments did so well it took it over the account.

What Should You Do If You Are A Southern California Investor Who Suspects You Have Suffered Overconcentration Losses? 

First of all, it is important that you not try to resolve this dispute without seasoned San Diego failure to diversify lawyers by your side.  Contact our San Diego Overconcentration Law Firm today.  Gather any documentation you were given by your financial advisor, as well as any communications between the two of you, and account statements you received. If we decide to work together, we will file a FINRA lawsuit on your behalf.

Trusted San Diego Overconcentration Law Firm

Shepherd Smith Edwards and Kantas is not only one of the most well-respected securities law firms in California, but throughout the US. We are well-regarded not just by peers, opposing counsel, and others in the industry, but also by our clients. Read our client reviews to find out what it is like working with us.

In San Diego County, San Bernardino County, Riverside County, Los Angeles County, Ventura County, Kern County, and the rest of Southern California, call (619) 550-4847  or (800) 259-9010.

Our San Diego Overconcentration Law Firm
1545 Hotel Cir S #150-1
San Diego, CA 92108